The early hedge fund can be said to be a form of fund management based on the conservative investment strategy of hedging. However, after decades of evolution, hedge funds have lost the original connotation of risk hedging, and the title of hedge funds also exists in name only. Hedge fund has become synonymous with a new investment model, that is, based on the latest investment theory and extremely complex financial market operation skills, making full use of the leverage of various financial derivatives, taking high risks and pursuing high returns.

Funds that use hedging methods are called hedge funds, also known as hedge funds or hedge funds.